Brexit to place ‘considerable demands’ on City watchdog the FCA

Brexit will continue to place “considerable demands” on the City watchdog, it said today as the regulator unveiled its plan for the coming year.

The Financial Conduct Authority (FCA) unveiled its business plan for 2019-20 and said Britain’s departure from the EU would continue to dominate its attention.

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The regulator also outlined plans to tackle workplace culture and governance, prepare for future regulation and crackdown on financial crime through better use of technology.

But these areas are likely to take a back seat as Brexit uncertainty rolls on.

FCA chief executive Andrew Bailey said Brexit would continue to stretch the organisation but that it would work to maintain market integrity, protect consumers and make competition work well in the financial services industry.

“Dealing with Brexit will be the most immediate challenge we face,” chief executive Andrew Bailey said.

He added: “While Brexit will no doubt continue to place considerable demand on us and on firms, our approach will always focus on delivering our statutory objectives.”

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The FCA admitted its attempts to prioritise the future of regulation may be disrupted by Brexit.

The transition away from the scandal-hit Libor interest rate by 2021 will also be on the FCA’s radar this year as a key priority.

In September last year, along with the Prudential Regulation Authority (PRA), the FCA issued a letter to major banks and insurers urging them to ramp up preparations to move away from Libor.

The FCA said it would focus on firms that are still not "effectively managing their transition risks."